The Supreme Court recently canceled the renewal of 88 iron ore mining leases in Goa which were granted in 2015. With this, the mining industry in Goa has received another setback just when it was regaining the lost ground.

The top court held as illegal the renewal given to the companies, by holding that the renewal of licences appears to have been carried out with the motive to maximise profits but without any consideration for mineral development or for social benefits. Firstpost takes a look at the mining industry in Goa, and what could be the possible impacts of the ban, especially on related industries like shipping, the gross state domestic product and the budget which is likely to be tabled in the state Assembly this month.

The Supreme Court said that the govt's move was against the earlier decisions and orders of the apex court which, in 2014 had said that the state government was required to grant fresh mining leases and not to give a second renewal.

A bench of Justices Madan B Lokur and Deepak Gupta, in its 101-page judgment, said the state government was obliged to grant fresh mining leases in accordance with law.

It directed the Centre and the Goa government to grant fresh environmental clearances to them and asked the state to take necessary steps to grant fresh mining leases in accordance with the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.

The court has given mining leaseholders time till 15 March to manage their affairs. The ban is likely to impact not just the revenue of the state but other industries such as shipping as well. The ban is a major setback, though one that could have been avoided had the state not rushed through the decision and worked as per the Supreme Court's order.